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Expanding Frontiers

The Risks and Market Distortions of Passive Investing

June 24, 202619 min

Show notes

This episode discusses sources that analyze the profound migration of capital from active fund management to passive investment strategies, such as ETFs and index funds. The New Constructs report warns that this trend has created overcrowded trades, where massive inflows into a few dominant tech stocks result in market inefficiencies and inflated valuations.

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